If the Fed Purchases Government Securities from a Commercial Bank,which

question 8

Multiple Choice

If the Fed purchases government securities from a commercial bank,which of the following will happen?

• A) The Fed will increase the bank's reserves on deposit at the Fed.
• B) The Fed will decrease the bank's reserves on deposit at the Fed.
• C) The assets (government securities)of the Fed will decrease.
• D) The assets (government securities)of the Fed will increase.
• E) a and d

---

Definitions:

Muscle

A tissue in animals composed of fibers capable of contracting to effect bodily movement.

Hyaline Cartilage

A type of connective tissue found in various parts of the body such as the nose, trachea, and larynx, characterized by a translucent appearance and providing support with flexibility.

Fibrocartilage

A type of tough, very dense, and fibrous cartilage found in places requiring great tensile strength such as intervertebral discs and the menisci.

Elastic Cartilage

A type of flexible cartilage that contains elastic fibers, enabling structures like the ear and epiglottis to bend and return to their original shape.